With rates rising again, Essential Income Fund I gives investors a lender’s position, with secured certificates in a fund that carries no bank debt, backed by a portfolio of real estate loans and paying fixed monthly income
KANSAS CITY, MO / ACCESS Newswire / October 6, 2026 / Most investors evaluating a private fund ask what it buys. Sierra Davis, Founder and Principal of Essential Investment Group, LLC, says the better question is where the investor sits in the capital stack. With rates moving higher again, that position can decide who keeps getting paid. Davis today announced that Essential Income Fund I, LLC, built to sit at the front of the capital stack, is open to verified accredited investors under Rule 506(c).
“Two investors can put the same money into real estate in the same year and get completely different outcomes,” said Davis. “The difference usually isn’t the property. It’s whether they’re standing in front of the bank or behind it.”
Front or back, and why it matters now
Every financed property has a capital stack, the order in which its funders are repaid. The lender sits at the front and is paid first, with the property as collateral. Equity investors sit at the back and are paid from what’s left. Most private real estate funds buy with large bank loans, which places their investors at the back.
Rising rates push pressure toward the back. Owners with floating-rate debt or loans coming due face higher payments, leaving less for equity investors, and if a property can’t support its loan, the lender recovers first. The front benefits from the same conditions. In the Federal Reserve’s July 2026 survey of senior loan officers, banks reported that standards for residential mortgages, including GSE and government-backed loans, remain at the tighter end of their historical ranges, which keeps many real estate borrowers turning to private lenders. And when rates rise, existing mortgage notes tend to trade at deeper discounts.
Built for the front
Essential Income Fund I is the lender. It acquires performing real estate notes and originates secured loans across the country, primarily in first lien position, with a target loan-to-value of 60% to 70% and a maximum of 75%, so the borrower’s equity cushions every loan.
“No strategy is immune to the economy, and I’ll always say that plainly,” said Davis. “That’s why we underwrite every loan with an equity cushion and independent valuation. But being first in line changes how a rising-rate environment feels.”
Offering highlights
- Fixed contractual rates of 8.00% to 9.50% for 24 to 60 month terms; investments of $100,000 or more add 1%, up to 10.50%
- Monthly distributions, with principal scheduled to return at maturity
- $20,000 minimum; self-directed IRA eligible
- No management or performance fees
- Certificates secured by a blanket security interest in the fund’s assets (UCC-1)
Davis has more than 8 years of experience in note investing and direct lending, including $1M+ in completed secured acquisitions and originations, and previously worked as a data scientist for Fortune 500 organizations.
Davis suggests investors ask one question of any fund. “If the economy turns, who gets paid before me?” Accredited investors can request offering documents at essentialinvestmentgroup.com/incomefund or text 816-384-0432. Accredited status is verified before any subscription is accepted.
About Essential Income Fund I, LLC
Essential Income Fund I, LLC is a private real estate debt fund based in Kansas City, Missouri, managed by Essential Investment Group, LLC. The fund acquires performing real estate notes and originates secured real estate loans, with a focus on capital preservation and fixed monthly income for its investors. Securities are offered exclusively to verified accredited investors under Rule 506(c). Learn more at essentialinvestmentgroup.com/incomefund.
Media Contact
Sierra Davis, Founder and Principal
Essential Investment Group, LLC
sierra@essentialinvestmentgroup.com
816-384-0432
Important Disclosures
This release is for informational purposes only and is not an offer to sell or a solicitation of an offer to buy any security. Offers are made only through the fund’s Private Placement Memorandum to verified accredited investors under Rule 506(c). The securities are not registered with the SEC or any state regulator. Investing involves a high degree of risk, including possible loss of principal, and is illiquid. Fixed rates are contractual and not guaranteed. Statements about market conditions reflect the manager’s views and are not investment advice. Past performance does not guarantee future results.
SOURCE: Essential Investment Group LLC
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